Financial close for SA’s Lion Thorn Solar Park

UAE-based Yellow Door Energy and Nedbank Corporate and Investment Banking (Nedbank CIB) have announced financial close on the 49 MWp Lion Thorn Solar Park in South Africa

It comes as South Africa’s electricity sector enters a more stable phase, with state utility Eskom reporting recently a second consecutive annual profit and the country passing 470 days without load-shedding.

At the same time, private investment is increasingly helping to add new generation capacity as the electricity market opens to a wider range of developers, traders and corporate offtakers.

Nedbank CIB is financing the Lion Thorn Solar Park project, enabling construction work to proceed at Leeudoringstad in North West Province.

Utility-scale project

The utility-scale project has secured long-term power purchase agreements with PPC and POWERX, a NERSA-licensed private electricity trader.

Once operational, it is expected to generate approximately 115 gigawatt-hours of renewable electricity in its first year and avoid an estimated 104 190 tonnes of carbon emissions annually.

John Taylor, managing director for Yellow Door Energy South Africa, said reaching financial close demonstrated the company’s ability to develop bankable, large-scale renewable energy projects in the country.

“The project will provide reliable, cost-effective clean electricity to our customers while supporting energy security, economic growth and the country's transition to a lower-carbon future,” he said.

Private investment

The transaction comes as private investment in South Africa's electricity sector continues to grow and supports the development of new renewable generation capacity while contributing to South Africa's energy transition, long-term energy security and economic growth.

In 2025, NERSA-registered private generation projects represented an estimated R158bn in investment and 7,464 MW of generation capacity.

Hlatse Nkune, principal of power and renewables finance at Nedbank CIB, said South Africa's electricity market is evolving, creating new opportunities for renewable energy developers, traders and corporate customers.

“Lion Thorn Solar Park demonstrates how innovative financing and long-term offtake arrangements can unlock new generation capacity, strengthen energy security and support the country's transition to a more sustainable energy future,” said Nkune.

“Transactions such as these are critical to accelerating private sector participation in the energy market and expanding access to reliable electricity.”

Construction update

Construction work on the site is now scheduled to begin during September, with commissioning anticipated in 2028.

The project is also expected to create employment and economic opportunities during construction and operations.

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